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The crazy-expensive gold Apple Watch could make $5 billion per quarter

February 18, 2015, 2:28 PM UTC
Apple Unveils iPhone 6
CUPERTINO, CA - SEPTEMBER 09: Apple CEO Tim Cook talks about the Apple Watch during an Apple special event at the Flint Center for the Performing Arts on September 9, 2014 in Cupertino, California. Apple unveiled the Apple Watch wearable tech and two new iPhones, the iPhone 6 and iPhone 6 Plus. (Photo by Justin Sullivan/Getty Images)
Photograph by Justin Sullivan — Getty Images

News flash: Apple products are expensive, and Apple makes significant revenue every quarter because of it’s thick margins. The high-end version of its upcoming Apple Watch, though, could set a new record in terms of cost.

Watch more of the latest news about Apple from Fortune’s video team:

Apple (AAPL) is planning on ordering more than 5 million units of the Apple Watch for its initial run in total, according to a Wall Street Journal report Tuesday. Half of those will be the most basic model, which are expected to sell for $350. A third of the initial run will be the as-of-yet unpriced mid-tier model.

As longtime Apple watcher Jon Gruber points out, that leaves around 17% of the the initial production run to be the high-end “Edition” model, which will be cased in 18-karat gold. The Edition model doesn’t have a set price yet, but it’s expected to go for more than the $4,000 Mac Pro, making it among the most expensive Apple products ever.

Gruber notes that 17% of a figure between 5 million and 6 million translates to between 850,000 and 1 million units. If the price comes in at $5,000 per Apple Watch, and Apple sells 1 million per quarter, that means Apple can pencil in $5 billion in revenue on sales of the high-end Watch.

Of course, the price could be even higher, meaning that could be the low end of potential gains from the Edition Watch.